DWS World Funds

DWS Investment S.A. DWS World Funds

Annual Report 2020 n DWS South Africa Rand Short Duration Bond Fund

Investment Fund Organized under Luxembourg Law DWS South Africa Rand Short Duration Bond Fund Contents

Annual report 2020 for the period from January 1, 2020, through December 31, 2020

General information ...... 2

Annual report and annual financial statements DWS South Africa Rand Short Duration Bond Fund ...... 6

Supplementary information Material changes ...... 14

Information in accordance with article 21 of the amended Law of July 12, 2013, on alternative investment fund managers ...... 15

Remuneration Disclosure...... 16

Information pursuant to Regulation (EU) 2015/2365 ...... 18

Report of the Réviseur d’Entreprises agréé...... 19

1 General information

The fund described in this tributions, which are, for exam- Issue and redemption prices report is an investment fund ple, reinvested free of charge The current issue and redemp- (fonds commun de place- within the scope of investment tion prices and all other infor- ment) in the form of an accounts at DWS Investment mation for unitholders may be umbrella fund in accordance S.A., are used as the basis for requested at any time at the with Part II of the Luxem- calculating the value. Past per- registered office of the Man- bourg Law of December 17, formance is not a guide to agement Company and from 2010, on undertakings for future results. The correspond- the paying agents. In addition, collective investment, as ing benchmark – if available – is the issue and redemption prices amended, and is considered also presented in the report. All are published in every country to be an alternative invest- financial data in this publication of distribution through appro- ment fund (“AIF”) in accor- is as of December 31, 2020 priate media (such as the dance with the Law of (unless otherwise stated). Internet, electronic information July 12, 2013, on alternative systems, newspapers, etc.). investment fund managers, Sales prospectuses as amended. Fund units are purchased on the basis of the current sales Performance prospectus and management The investment return, or per- regulations, as well as the key formance, of a mutual fund investor information document, investment is measured by the in combination with the latest change in value of the fund’s audited annual report and any units. The net asset values per semiannual report that is more unit (= redemption prices) with recent than the latest annual the addition of intervening dis- report.

2 Coronavirus crisis The coronavirus has spread since January 2020 and has subsequently led to a serious economic crisis. The rapid proliferation of the virus was reflected in, among other things, significant price market distortions and substantially increased volatility at the same time. Restrictions on freedom of movement, repeated lockdown measures, produc- tion stoppages, as well as disrupted supply chains, are exerting major pressure on downstream economic processes, which caused global economic prospects to deteriorate considerably. Even though gradual recovery was to be observed again in the markets in the interim – due, among other things, to assistance programs in the context of monetary and fiscal policy as well as the introduction of vaccination campaigns – the actual or possible mid- to long- term effects of the crisis on the economy, individual markets and sectors, as well as the social implications, cannot be reliably evaluated or adequately forecast at the time of preparing this report in light of the pace of the global spread of the virus and the associated high degree of uncertainty. Consequently, there may still be a material impact on the respective sub-fund’s assets. A high level of uncertainty exists in relation to the financial implications of the pandemic, as these are dependent on external factors such as the spread of the virus and the measures taken by individual governments and central banks, the successful stemming of the development of infection rates and the speedy and sustainable restart of the economy.

The Management Company is therefore continuing its efforts, within the framework of its risk management strategy, to assess these uncertainties and their possible impact on the activities, liquidity and performance of the respective sub-fund. The Management Company is taking all measures deemed appropriate to protect investor interests to the greatest possible extent. In coordination with the service providers, the Management Company observed the consequences of the coronavirus crisis and adequately included its impact on the respective sub-fund and the markets in which the respective sub-fund invests into its decision-making processes. As of the date of this report, no significant redemption requests had been made in respect of the respective sub-fund; the effects on the respective sub-fund’s unit certificate transactions are continuously monitored by the Management Company; the performance capability of the most important service providers did not experience any significant impairment. In this context, the Management Company of the umbrella fund satisfied itself in line with numerous national guidelines and following discussions with the most important service providers (especially the Depositary, the portfolio management and the fund administration) that the measures taken and the business continuity plans put in place (including extensive hygiene measures on the premises, restrictions on business travel and events, precautions to ensure the reliable and smooth running of business processes in the event of a suspected case of coronavirus infection, expansion of the technical options for mobile working) will curb the currently foreseeable or ongoing operational risks and will ensure that the respective sub-fund’s activities will not be disrupted.

At the time of preparing this report, the Management Company of the umbrella fund is of the opinion that there are no signs indicating any doubt on the ability of the respective sub-fund to continue as a going concern, nor were there any liquidity problems for the respective sub-fund.

Annual report and annual financial statements Annual report DWS South Africa Rand Short Duration Bond Fund

Investment objective and DWS SOUTH AFRICA RAND SHORT DURATION BOND FUND performance in the reporting Five-year performance period 140 DWS South Africa Rand Short 132 Duration Bond Fund is denom- 124 inated in South African rand 116 (ZAR). The sub-fund seeks 108 to generate steady earnings 100 growth. To this end, in line with 92 its investment policy it invests 84 in interest-bearing instru- 12/15* 12/16 12/17 12/18 12/19 12/20 DWS South Africa Rand Short Duration Bond Fund * 12/2015 = 100 ments that are denominated in Data on ZAR basis ZAR and have a short term to “BVI method” performance, i.e., excluding the initial sales charge. maturity. Past performance is no guide to future results. As of: December 31, 2020

The investment climate in DWS SOUTH AFRICA RAND SHORT DURATION BOND FUND the reporting period was still Performance at a glance characterized by very low, ISIN 1 year 3 years 5 years and in some cases negative, interest rates in the industrial LU0406680719 5.6% 17.8% 33.3% countries and volatility in the “BVI method” performance, i.e., excluding the initial sales charge. Past performance is no guide to future results. As of: December 31, 2020 capital markets. Market par- Data on ZAR basis ticipants’ focus lay not only on the high levels of debt worldwide and on uncertainty regarding the monetary poli- rate policy of the South African undertaken by the international cies of the central banks, but central bank continued to be community of nations and the also shifted to the noticeably caught between inflation on the packages of measures intro- weakened global economy, one hand and weak economic duced with the objective of which was exacerbated due to growth on the other. The port- tackling the economic conse- the uncertainties caused by the folio management considered quences of the COVID-19 crisis, COVID-19 pandemic*. How- a further key risk to be the a strong price recovery also ever, political issues such as uncertainty surrounding the started to emerge in the South the U.S. presidential election in consequences of the COVID-19 African bond market in the early November 2020 also influ- pandemic on the global econ- second half of March 2020 – enced market developments at omy and financial markets. accompanied by a noticeable times. Against this backdrop, decline in bond yields – which the sub-fund DWS South Africa Prices crashed in the South continued through the end of Rand Short Duration Bond Fund African bond market in the 2020 but was unable to com- achieved an appreciation of first two and a half months of pletely compensate for the pre- 5.6% per unit (BVI method; in 2020, accompanied by a sig- vious significant price losses. ZAR) in the 2020 fiscal year. nificant increase in yield. This This development was also was due to coronavirus disease supported in particular by the Investment policy in the (COVID-19)*, which spread several-stage interest rate cut reporting period into a pandemic and led to in 2020 by the South African In the view of the portfolio noticeable social and economic central bank of three percent- management, political uncer- restrictions (lockdowns), the age points, most recently to tainties in South Africa repre- consequences of which were 3.5% p.a. Short-term interest sented a key risk for the sub- still unforeseeable until most rates in South Africa – as mea- fund. In addition, the interest recently. In view of the efforts sured by three-month money –

6 sank from 6.8% p.a. during the year, most recently to 3.6% p.a.

In line with its investment policy, the portfolio management invested in short-term ZAR bonds. It favored issues of supranationals as well as banks, including near- government issuers. These included, among others, interest-bearing instruments from the European Bank of Recon- struction and Development, Germany’s Kreditanstalt für Wiederaufbau (KfW) or the Afri- can Development Bank. South African government bonds rounded out the portfolio. The bonds held in the portfolio had largely investment-grade status (ratings of BBB- or better from the leading rating agencies) as of the reporting date. With this orientation, the sub-fund was able to benefit from the higher yields available in South Africa relative to industrial countries.

* The coronavirus (COVID-19) crisis was/is a major challenge, including for the economy worldwide, and is therefore a significant event during the reporting period. Uncertainties regarding the effects of COVID-19 are important for understanding the annual financial statements. Additional details are provided in the explanations in the “General information” section.

7 The format used for complete dates in security names in the investment Annual financial statements portfolio is “day/month/year”. DWS South Africa Rand Short Duration Bond Fund

Statement of net assets as of December 31, 2020

Amount in ZAR % of net assets I. Assets 1. Bonds (issuers): Institutions 228 283 848.00 53.76 Other financing institutions 151 037 290.00 35.57 Other public bodies 35 593 750.00 8.38 Companies 30 368 400.00 7.15 Total bonds: 445 283 288.00 104.86

2. Cash at bank 5 150 038.63 1.21

3. Other assets 9 296 075.75 2.19

II. Liabilities 1. Loan liabilities -33 819 805.51 -7.96

2. Other liabilities -545 493.85 -0.12

3. Liabilities from share certificate transactions -747 670.75 -0.18

III. Net assets 424 616 432.27 100.00

Negligible rounding errors may have arisen due to the rounding of calculated percentages.

8 DWS South Africa Rand Short Duration Bond Fund

Investment portfolio – December 31, 2020

Count/ Quantity/ Purchases/ Sales/ Total market % of Security name currency principal additions disposals Market price value in net assets (– / ’000) amount in the reporting period ZAR

Securities traded on an exchange 430 996 238.00 101.50

Interest-bearing securities 0.5000 % African Development Bank 11/21.09.21 MTN (XS0672279568)...... ZAR 28 000 % 97.0450 27 172 600.00 6.40 4.5000 % Asian Development Bank 20/07.12.23 MTN (XS2265997036)...... ZAR 12 000 12 000 % 98.8800 11 865 600.00 2.79 0.0000 % BNG Bank 12/18.10.22 MTN (XS0845463990)...... ZAR 20 000 20 000 % 92.2360 18 447 200.00 4.34 0.5000 % Coöperatieve Rabobank 11/26.11.21 MTN (XS0697198561)...... ZAR 30 000 10 000 % 95.8730 28 761 900.00 6.77 6.7000 % Deutsche Bank (London Branch) 14.01.21 MTN (XS1013738197)...... ZAR 15 000 15 000 % 100.1380 15 020 700.00 3.54 10.0000 % Development Bank of South Africa 03/27.02.23 MTN (ZAG000019779). . . . . ZAR 20 000 20 000 % 107.6025 21 520 498.00 5.07 9.0300 % Development Bank of South Africa 14/18.06.21 MTN (ZAG000116906). . . . . ZAR 13 000 20 000 7 000 % 102.0240 13 263 120.00 3.12 3.9000 % European Bank for Rec. & Dev. 20/17.11.21 MTN (XS2258970263)...... ZAR 30 000 30 000 % 99.9355 29 980 650.00 7.06 7.0000 % European Bank for Rec. & Dev.18/31.12.20 MTN (XS1929536008)...... ZAR 35 000 15 000 % 100.0000 35 000 000.00 8.24 9.0000 % European Investment Bank 11/31.03.21 MTN (XS0605996700)...... ZAR 25 000 % 100.8710 25 217 750.00 5.94 8.2500 % European Investment Bank 14/13.09.21 MTN (XS1072624072)...... ZAR 15 000 15 000 % 102.3020 15 345 300.00 3.61 8.3750 % European Investment Bank 14/29.07.22 MTN (XS1090019370)...... ZAR 18 000 18 000 % 106.1260 19 102 680.00 4.50 7.5000 % Int. Bank for Rec. and Developm. 18/17.05.23 MTN (XS1822557697). . . . . ZAR 13 000 13 000 % 106.5630 13 853 190.00 3.26 0.0000 % Int. Bank for Rec. and Developm. 97/01.04.22 MTN (XS0074838300). . . . . ZAR 20 000 20 000 % 94.3910 18 878 200.00 4.45 7.5000 % KfW 17/10.11.22 MTN (XS1716607269). . . ZAR 20 000 20 000 % 105.4120 21 082 400.00 4.97 6.7500 % KfW 19/15.07.21 MTN (XS2027582076). . . ZAR 40 000 % 101.1685 40 467 400.00 9.53 7.5000 % Rabobk Nederld 14/21 Mtn (XS1046468168). ZAR 10 000 10 000 % 100.5490 10 054 900.00 2.37 6.7500 % South Africa 06/31.03.21 No.208 (ZAG000030396)...... ZAR 30 000 20 000 50 000 % 100.8855 30 265 650.00 7.13 7.7500 % South Africa 12/28.02.23 No.2023 (ZAG000096165)...... ZAR 5 000 28 000 23 000 % 106.5620 5 328 100.00 1.25 9.5000 % Transnet SOC 13/13.05.21 MTN Reg S (XS0992645274)...... ZAR 30 000 30 000 % 101.2280 30 368 400.00 7.15

Unlisted securities 14 287 050.00 3.36

Interest-bearing securities 0.5000 % African Development Bank 12/23.02.22 MTN (XS0739767746)...... ZAR 15 000 15 000 % 95.2470 14 287 050.00 3.36

Total securities portfolio 445 283 288.00 104.86

Cash at bank 5 150 038.63 1.21

Demand deposits at Depositary Deposits in EU/EEA currencies...... ZAR 5 134 845.13 % 100 5 134 845.13 1.21

Deposits in non-ZAR currency Japanese yen ...... JPY 107 276.00 % 100 15 193.50 0.00

Other assets 9 296 075.75 2.19 Interest receivable ...... ZAR 9 296 075.75 % 100 9 296 075.75 2.19

Total assets 1 459 729 402.38 108.27

Loan liabilities -33 819 805.51 -7.96 ZAR - Kredite...... ZAR -33 819 805.51 % 100 -33 819 805.51 -7.96

Other liabilities -545 493.85 -0.12 Liabilities from cost items...... ZAR -492 925.79 % 100 -492 925.79 -0.11 Additional other liabilities...... ZAR -52 568.06 % 100 -52 568.06 -0.01

9 DWS South Africa Rand Short Duration Bond Fund

Count/ Quantity/ Purchases/ Sales/ Total market % of Security name currency principal additions disposals Market price value in net assets (– / ’000) amount in the reporting period ZAR

Liabilities from share certificate transactions ZAR -747 670.75 % 100 -747 670.75 -0.18

Net assets 424 616 432.27 100.00

Net asset value per unit 18.36

Number of units outstanding 23 132 267.766

Negligible rounding errors may have arisen due to the rounding of calculated percentages.

A list of the transactions completed during the reporting period that no longer appear in the investment portfolio is available free of charge from the Management Company upon request.

Exchange rates (indirect quotes) As of December 30, 2020

Japanese yen ...... JPY 7.060650 = ZAR 1

Notes on valuation The Management Company determines the net asset values per unit and performs the valuation of the assets of the fund. The basic provision of price data and price validation are performed in accordance with the method introduced by the Management Company on the basis of the legal and regulatory requirements or the principles for valuation methods defined in the fund prospectus.

If no trading prices are available, prices are determined with the aid of valuation models (derived market values) which are agreed between State Street Bank International GmbH, Luxembourg Branch, as external price service provider and the Management Company and which are based as far as possible on market parameters. This procedure is subject to an ongoing monitoring process. The plausibility of price information from third parties is checked through other pricing sources, model calculations or other suitable procedure.

Investments reported in this report are not valued at derived market values.

Footnotes 1 Does not include positions with a negative balance, if such exist.

10 DWS South Africa Rand Short Duration Bond Fund

Statement of income and expenses (incl. income adjustment) Statement of changes in net assets for the fund

for the period from January 1, 2020, through December 31, 2020 I. Value of the fund‘s net assets at the beginning of the fiscal year...... ZAR 390 462 457.01 I. Income 1. Net inflows ...... ZAR 12 441 064.18 1. Interest from securities (before withholding tax). . . . ZAR 32 022 436.51 a) Inflows from subscriptions...... ZAR 53 067 194.60 2. Interest from investments of liquid assets b) Outflows from redemptions...... ZAR -40 626 130.42 (before withholding tax)...... ZAR 470 424.10 2. Income adjustment...... ZAR -422 245.07 3. Other income...... ZAR 2 975.16 3. Net gain/loss for the fiscal year...... ZAR 22 135 156.15 thereof: Total income ...... ZAR 32 495 835.77 Net change in unrealized appreciation...... ZAR 434 880.37 Net change in unrealized depreciation...... ZAR -2 065 869.10 II. Expenses 1. Interest on borrowings and negative interest II. Value of the fund‘s net assets on deposits and expenses similar to interest. . . . . ZAR -42 139.05 at the end of the fiscal year ...... ZAR 424 616 432.27 thereof: Commitment fees...... ZAR -1 608.75 2. Management fee...... ZAR -5 841 107.20 Summary of gains/losses thereof: All-in fee ...... ZAR -5 841 107.20 Realized gains (incl. income adjustment)...... ZAR 2 734 835.87 3. Auditing and publication costs...... ZAR -34 387.62 Publication costs...... ZAR -34 387.62 from: 4. Other expenses ...... ZAR -1 330 958.85 Securities transactions ...... ZAR 2 024 185.12 thereof: (Forward) currency transactions ...... ZAR 710 650.75 Legal and consulting expenses. . ZAR -1 121 215.40 Realized losses (incl. income adjustment)...... ZAR -4 215 934.04 Taxe d’abonnement ...... ZAR -209 743.45 from: Total expenses...... ZAR -7 248 592.72 Securities transactions ...... ZAR -4 213 656.70 (Forward) currency transactions ...... ZAR -2 277.34 III. Net investment income...... ZAR 25 247 243.05 Net change in unrealized appreciation/depreciation . . ZAR -1 630 988.73 IV. Sale transactions from: Securities transactions ...... ZAR -1 630 988.73 1. Realized gains...... ZAR 2 734 835.87 2. Realized losses...... ZAR -4 215 934.04

Capital gains/losses ...... ZAR -1 481 098.17 Details on the distribution policy* V. Realized net gain/loss for the fiscal year...... ZAR 23 766 144.88 The income for the fiscal year is reinvested. 1. Net change in unrealized appreciation ...... ZAR 434 880.37 2. Net change in unrealized depreciation ...... ZAR -2 065 869.10 * Additional information is provided in the sales prospectus. VI. Unrealized net gain/loss for the fiscal year. . . . . ZAR -1 630 988.73 VII. Net gain/loss for the fiscal year...... ZAR 22 135 156.15

Note: The net change in unrealized appreciation (depreciation) is calculated by subtracting the total of all unrealized appreciation (depreciation) at the end of the fiscal year from the total of all unrealized appreciation (depreciation) at the beginning of the fiscal year. Total unrealized appreciation (depreciation) includes positive (negative) differences resulting Changes in net assets and in the net asset value per from the comparison of the values recognized for the individual assets as of the reporting unit over the last three years date with their respective acquisition costs. Unrealized appreciation/depreciation is shown without income adjustment. Net assets Net asset at the end of the value per BVI total expense ratio (TER) fiscal year ZAR unit ZAR

The total expense ratio was 1.72% p.a. The TER expresses total expenses and fees (excluding transaction costs) including any commitment fees as a percentage of the 2020...... 424 616 432.27 18.36 fund’s average net assets for a given fiscal year. 2019...... 390 462 457.01 17.38 2018...... 443 569 382.71 16.46 Transaction costs

The transaction costs paid in the reporting period amounted to ZAR 3 206.58. Since the fund’s operations as of December 31, 2020, referred only to the sub-fund DWS South Africa Rand Short Duration Bond Fund, the financial statements for the sub-fund The transaction costs include all costs that were reported or settled separately for the simultaneously represent the consolidated figures for the entire fund. account of the fund in the fiscal year and are directly connected to the purchase or sale of assets. Any financial transaction taxes which may have been paid are included in the calculation.

Transactions processed for the account of the fund’s assets via closely related companies (based on major holdings of the Deutsche Bank Group)

The share of transactions conducted in the reporting period for the account of the fund’s assets via brokers that are closely related companies and persons (share of 5% and above), amounted to 14.26% of all transactions. The total volume was ZAR 58 745 177.97.

Supplementary information Material changes in accordance with article 20 (2) (d) of the amended Law of July 12, 2013, on alternative investment fund managers

In accordance with article 20 (2) (d) of the amended Law of July 12, 2013, on alternative investment fund managers, material changes that occurred in the investment undertaking in the reporting period are disclosed by the Company in the table below.

Relating to the AIF Description of Potential or expected effect Date on which the material change of the material change the material change on the investor takes effect DWS South Africa None – – Rand Short Duration Bond Fund

14 DWS South Africa Rand Short Duration Bond Fund

Information in accordance with article 21 of the amended Law of July 12, 2013, on alternative investment fund managers

Details regarding illiquid assets Percentage of assets which are subject to special arrangements arising from their illiquid nature as of the reporting date: 0% Details concerning new regulations for liquidity management During the reporting period no regulatory changes have been enacted for liquidity management. Risk Profile of the AIF: The following risk figures have been calculated in order to assess the main risks as of the reporting date. For the purposes of calculating the risk profile of the AIF, a review was carried out into target investment undertakings exclusively for market risk; if and in so far as the relevant data is not available, a suitable reference portfolio or an index is used for the review. a) Market Risk The interest rate sensitivity measure DV01 is the change in the Net Asset Value (NAV) of the fund if market interest rates increase uniformly by one basis point (bp). The credit spread sensitivity measure CS01 is the change in the NAV of the fund if credit spreads of reference entities in the portfolio increase uniformly by 1 bp. The equity sensitivity, the so called Net Equity Delta, is the change in the NAV of the fund if share prices of equity positions in the portfolio increase uniformly by 1%. The Net Currency Delta is the change in the NAV of the fund if foreign exchange rates increase uniformly by 1%.

Data in ZAR DV01 CS01 Net Equity Delta Net Currency Delta -37,496 -36,502 0 51,577

The Market Risk limit (150%) has not been exceeded. b) Counterparty Risk All OTC (“over-the-counter”) transactions are conducted exclusively on the basis of ISDA or German standardized master agree- ments. All transactions for efficient portfolio management are conducted solely by way of exchange of collateral. All counterparties are examined carefully before any transactions are entered into, and they must have at least an investment-grade rating. Counterparties have the right to use any collateral provided. As of the reporting date, the fund’s portfolio contained no material counterparty risks. The counterparty risk exposure, if any, does not exceed 1% of the fund’s net asset value (NAV) for any of the counterparties. c) Liquidity Risk Percentage of the portfolio assets that can be liquidated within the following periods at fair prices and with minimum market disruption:

Percentage of NAV of the AIF 1 Day or Less 2-7 Days 8-30 Days 31-90 Days 91-180 Days 181-365 Days More than 365 Days 24 % 70% 6 % 0% 0% 0% 0%

Implemented Risk Management Systems The risk management system is based on the IT application Aladdin, which is an integrated system for the areas of portfolio management, trading, risk and compliance, which is made available by the provider BlackRock Solutions as an application service provider solution. Risk Controlling is executed based on internal Risk Management guidelines by a department that is independent from the portfolio management. It covers the continuous Risk Management process for the detection, evaluation and monitoring of Market, Liquidity and Counterparty Risks and also the monitoring of leverage. Additionally, results from reasonable monthly stress test scenarios for Market and Liquidity Risks are used by Risk Controlling and Portfolio Management for estimating the effect on portfolio risk that appears to be due to single investment positions. To measure market risks on a daily basis, a relative value-at-risk approach via historical simulation is used. Change of the Maximum Scope for Leverage No changes related to the maximum scope for leverage occurred during the reporting period. Total Leverage

Leverage Minimum Maximum Average Limit Gross Leverage 0.85 1.09 0.98 5 Net Leverage 0.87 1.17 0.99 3

15 Remuneration Disclosure

Remuneration Disclosure

DWS Investment S.A. (the “Company”) is a subsidiary in DWS Group GmbH & Co. KGaA (“DWS KGaA”), Frankfurt/ Main, one of the world’s leading asset managers providing a broad range of investment products and services across all major asset classes as well as solutions aligned to growth trends to its clients globally.

DWS KGaA is a publicly traded company listed on the Frankfurt Stock Exchange, which is majority owned by Deutsche Bank AG.

As a result of the sector specific legislation under AIFMD (Alternative Investment Fund Managers Directive) and in accordance with Sec. 1 and Sec. 27 of the German “Institutsvergütungsver- ordnung” (“InstVV”), the Company is carved-out from Deutsche Bank Group’s (“DB Group”) compensation policy and strategy. DWS KGaA and its subsidiaries (“DWS Group” or only “Group”) have established their own compensation governance, policies and structures, including a DWS group-wide guideline of identifying “Material Risk Takers” (“MRTs”) at Company level as well as DWS Group level in line with the criteria stated in AIFMD and in the guidelines on sound remuneration policies under the AIFMD published by the European Securities and Markets Authority (“ESMA Guidelines”).

Governance Structure

DWS Group is managed through its General Partner, the DWS Management GmbH. The General Partner has changed its remit in June 2020 and has now six Managing Directors who serve as the Executive Board (“EB”) of the Group. The EB – supported by the DWS Compensation Committee (“DCC”) – is responsible for establishing and operating the compensation system for employees. It is overseen by the DWS KGaA Supervisory Board which has established a Remuneration Committee (“RC”). The RC reviews the compensation system of the Group’s employees and its appropriateness. The RC supports the Supervisory Board in monitoring the appropriate structure of the remuneration systems for the Group’s employees. This is done by taking into account the effects of the remuneration system on the group-wide risk, capital and liquidity management as well as the consistency of the remuneration strategy with the business and risk strategy of the DWS Group.

The DCC is mandated to develop and design sustainable compensation frameworks and operating principles, to prepare recommendations on total compensation levels, and to ensure appropriate compensation and benefits governance and oversight for the Group. The DCC establishes quantitative and qualitative factors to assess performance as a basis for compensation related decisions and makes appropriate recommendations to the EB regarding the annual Variable Compensation pool and its allocation across the business areas and infrastructure functions. Voting members of the DCC comprise the Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), Chief Operating Officer (“COO”), and the Global Head of HR. The Head of Reward & Analytics is a nonvoting member. Control Functions such as Compliance, Anti-Financial Crime, and Risk Management are represented by CFO and COO in the DCC and are appropriately engaged in the design and application of the Group’s remuneration systems in the context of the tasks and functions assigned to them, to ensure that the remuneration systems do not create conflicts of interests, and to review the effects on the risk profile of the Group. The DCC reviews the remuneration framework of DWS Group regularly, at least annually, which includes the principles applying to the Company, and assesses if substantial changes or amendments due to irregularities have to be made.

The DCC is supported by two sub-committees: The DWS Compensation Operating Committee (“COC”) implemented to assist the DCC in reviewing the technical validity, operationalizing and approving new or existing compensation plans. The Integrity Review Committee implemented to review and decide on suspension and forfeiture matters involving DWS deferred compensation awards.

The internal annual review at DWS Group level concluded the design of the remuneration system to be appropriate, no significant irregularities were recognized.

Compensation Structure

The employees of the Company are subject to the compensation standards and principles as outlined in the DWS Compensation Policy. The policy is reviewed on an annual basis. As part of the Compensation Policy, the Group, including the Company, employs a Total Compensation (“TC”) philosophy which comprises Fixed Pay (“FP”) and Variable Compensation (“VC”).

The Group ensures an appropriate relationship between FP and VC across all categories and groups of employees. TC structures and levels reflect the Sub-Divisional and regional compensation structures, internal relativities, and market data, and assist in seeking consistency across the Group. One of the main objectives of the Group’s strategy is to align reward for sustainable performance at all levels whilst enhancing the transparency of compensation decisions and their impact on shareholders and employees with regard to DWS Group and as applicable DB Group performance. Achieving a sustainable balance between employee, shareholder and client interests is a key aspect of DWS’ Group compensation strategy.

FP is used to compensate employees for their skills, experience and competencies, commensurate with the requirements, size and scope of their role. The appropriate level of FP is determined with reference to the prevailing market rates for each role, internal comparisons and applicable regulatory requirements.

VC is a discretionary compensation element that enables the Group to provide additional reward to employees for their performance and behaviours without encouraging excessive risk-taking. VC determination considers sound risk measures by taking into account the Group’s Risk Appetite as well as the Group affordability and financial situation and providing for a fully flexible policy on granting or “not-granting” VC. VC generally consists of two elements – the “Group Component” and the “Individual Component”. There continues to be no guarantee of VC in an existing employment relationship.

For the 2020 financial year, the Group Component is dominantly determined based upon the performance of three Key Performance Indicators (KPIs) at DWS Group level: Adjusted Cost Income Ratio (“CIR”), Net Flows, Dividend Payout. These three KPIs represent important metrics for DWS Group’s financial targets and provide a good indication of its sustainable performance.

For employees at management level the Group Component additionally considers four equally weighted KPIs at DB Group level. 1

Depending on eligibility, the “Individual Component” is delivered either in the form of Individual VC (“IVC”) or a Recognition Award. IVC takes into consideration a number of financial and non-financial factors, relativities within the employee’s peer group and retention considerations. The Recognition Award provides the opportunity to acknowledge and reward outstanding contributions made by employees outside the scope of IVC eligibility (these are generally employees at lower hierarchical levels). Generally, there are two nomination cycles per year.

Both Group and Individual Component may be awarded in cash, share-based or fund-based instruments under the Group deferral arrangements. The Group retains the right to reduce the total amount of VC, including the Group Component, to zero in cases of significant misconduct, performance-related measures, disciplinary outcomes or unsatisfactory conduct or behaviour by the employee subject to applicable local law.

1 DB Group KPIs: Common Equity Tier 1 (“CET1”) capital ratio, leverage ratio, adjusted costs and post-tax return on tangible equity (“RoTE”)

16 Determination of VC and appropriate risk-adjustment

The Group’s VC pools are subject to appropriate risk-adjustment measures which include ex-ante and ex-post risk adjustments. The robust methodology in place aims at ensuring that the determination of VC reflects the risk-adjusted performance as well as the capital and liquidity position of the Group. The total amount of VC is primarily driven by (i) the Group affordability (i.e. what “can” DWS Group sustainably afford award in alignment with regulatory requirements) and (ii) performance (what “should” the Group award in order to provide an appropriate compensation for performance while protecting the long-term health of the franchise).

At the level of the individual employee, the Group has established “Variable Compensation Guiding Principles” which detail the factors and metrics that must be taken into account when making IVC decisions. These include, for instance, investment performance, client retention, culture considerations, and objective setting and performance assessment based on the “Total Performance’ approach. Furthermore, any control function inputs and disciplinary sanctions and their impact on the VC have to be considered as well.

As part of a discretionary decision-making process, the DWS DCC uses (financial and non-financial) key figures to identify differentiated and performance linked VC pools for business and infrastructure areas.

Compensation for 2020

Despite the ongoing pandemic, the diverse range of investment products and solutions as well as stabilizing markets contributed to significant net flows in 2020 and allowed the Group to execute its strategic priorities effectively. The intensified focus on investment performance and increased investor demand for targeted asset classes were key drivers of the success.

Against this backdrop, the DCC has monitored the affordability of VC for 2020. The committee has concluded that the capital and liquidity base of the Group remain above regulatory minimum requirements, and internal risk appetite threshold.

As part of the overall 2020 VC awards to be granted in March 2021, the Group Component was awarded to eligible employees in line with the assessment of the defined KPIs. The Executive Board recognizing the considerable contribution of employees and determined a target achievement rate of 98.50% for 2020 for DWS Group. Considering the DB Group target achievement as determined by the Deutsche Bank AG Management Board, the hybrid achievement rate for employees at management level was determined of 85.50% for 2020.

Identification of Material Risk Takers

In accordance with the Law as of 12 July 2013 on Alternative Investment Fund Managers (as subsequently amended) in conjunction with the ESMA Guidelines with accordance to AIFMD, the Company has identified individuals who have a material impact of the Company’s risk profile (“Material Risk Takers”). The identification process has been based on an assessment of the impact of the following categories of staff on the risk profile of the Company or on a fund it manages: (a) Board Members/Senior Management, (b) Portfolio/Investment managers, (c) Control Functions, (d) Staff heading Administration, Marketing and Human Resources, (e) other individuals (Risk Takers) in a significant position of influence, (f) other employees in the same remuneration bracket as other Risk Takers, whose roles have an impact on the risk profile of the Company or the Group. At least 40% of the VC for Material Risk Takers is deferred. Additionally, at least 50% of both, the upfront and the deferred proportion, are granted in the Group share-based instruments or fund-linked instruments for Key Investment Professionals. All deferred components are subject to a number of performance conditions and forfeiture provisions which ensure an appropriate ex-post risk adjustment. In case the VC is lower than EUR 50,000, the Material Risk Takers receive their entire VC in cash without any deferral.

Aggregate Compensation Information for the Company for 2020 1

Number of employees on an annual average 146 Total Compensation 2 EUR 17,680,609 Fixed Pay EUR 15,248,995 Variable Compensation EUR 2,431,614 Thereof: Carried Interest EUR 0 Total Compensation for Senior Management 3 EUR 1,964,735 Total Compensation for other Material Risk Takers 4 EUR 0 Total Compensation for Control Function employees EUR 954,201

1 In cases where portfolio or risk management activities have been delegated by the Company, the compensation data for delegates are not included in the table. 2 Considering various elements of remuneration as defined in the ESMA Guidelines which may include monetary payments or benefits (such as cash, shares, options, pension contributions) or none (directly) monetary benefits (such as fringe benefits or special allowances for car, mobile phone, etc.). 3 Senior Management refers to the members of the Management Board of the Company, only. Members of the Management Board meet the definition of managers. Apart from the members of Senior Management, no further managers have been identified. 4 Identified other material Risk Takers with control functions are shown in the line “Control Function employees”.

17 DWS South Africa Rand Short Duration Bond Fund

Information pursuant to Regulation (EU) 2015/2365 on transparency of securities financing transactions (SFTs) and of reuse and amending Regulation (EU) No. 648/2012 – Statement in accordance with Section A

There were no securities financing transactions according to the above Regulation in the reporting period.

18 KPMG issued an unqualified audit opinion for the full annual report. The translation of the report of the Réviseurauditor’s d’Entreprises opinion) agréé is as (the follows: independent KPMG Luxembourg, Société coopérative Tel.: +352 22 51 51 1 39, Avenue John F. Kennedy Fax: +352 22 51 71 1855 Luxembourg, Luxembourg E-mail: [email protected] Internet: www.kpmg.lu

To the unitholders of DWS World Funds 2, Boulevard Konrad Adenauer 1115 Luxembourg, Luxembourg

REPORT OF THE REVISEUR D’ENTREPRISES AGREE

Report on the audit of the financial statements

Audit opinion We have audited the accompanying financial statements of DWS World Funds and its sub-fund (“the Fund”), which comprise the investment portfolio, including the statement of investments in the securities portfolio and other net assets as of December 31, 2020, the statement of income and expenses and the statement of changes in net assets for the fiscal year then ended, as well as notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of DWS World Funds and its sub-fund as of December 31, 2020, and of the results of its operations and changes in its net assets for the fiscal year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of financial statements.

Basis for the audit opinion We conducted our audit in accordance with the Law of July 23, 2016, on the audit profession (“Law of July 23, 2016”) and with International Standards on Auditing (“ISAs”) as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier (“CSSF”). Our responsibilities under the Law of July 23, 2016, and the ISAs as adopted in Luxembourg by the CSSF are further described in the “Responsi- bilities of the réviseur d’entreprises agréé for the audit of the financial statements” section. We are also independent of the Fund in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants, including International Independence Standards, (the “IESBA Code”) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Other information The Management Board of the Management Company is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our report of the réviseur d’entreprises agréé thereon.

© 2021 KPMG Luxembourg, Société coopérative, a Luxembourg entity and T.V.A. LU 27351518 a member firm of the KPMG global organization of independent member firms R.C.S. Luxembourg B 149133 affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

19 Our audit opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report this fact. We have nothing to report in this regard.

Responsibilities of the Management Board of the Management Company and of those charged with governance for the financial statements The Management Board of the Management Company is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of financial statements, and for such internal control as the Management Board of the Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Management Board of the Management Company is responsible for assessing the ability of the Fund and its sub-fund to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manage- ment Board of the Management Company either intends to liquidate the Fund or one of its sub-funds or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Fund’s financial reporting process.

Responsibilities of the réviseur d’entreprises agréé for the audit of the financial statements The objective of our audit is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report of the réviseur d’entreprises agréé that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of July 23, 2016, and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstate- ments can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the Law of July 23, 2016, and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism throughout the audit.

20 We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effective- ness of the Fund’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management Board of the Management Company.

• Conclude on the appropriateness of the use by the Management Board of the Management Company of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Fund or one of its sub-funds to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the report of the réviseur d’entreprises agréé to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclu- sions are based on the audit evidence obtained up to the date of the report of the réviseur d’entreprises agréé. However, future events or conditions may cause the Fund or one of its sub-funds to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Luxembourg, April 28, 2021 KPMG Luxembourg Société coopérative Cabinet de révision agréé

Pia Schanz

21 Management Company, Alternative Management Board of the AIFM Auditor Investment Fund Manager (AIFM), Administration, Registrar and Transfer Agent, Nathalie Bausch KPMG Luxembourg and Main Distributor Chairwoman (since July 1, 2020) Société coopérative DWS Investment S.A., 39, Avenue John F. Kennedy DWS Investment S.A. Luxembourg 1855 Luxembourg, Luxembourg 2, Boulevard Konrad Adenauer 1115 Luxembourg, Luxembourg Manfred Bauer (until June 30, 2020) Depositary Equity capital as of December 31, 2020: DWS Investment S.A., EUR 343.1 million before profit appropriation Luxembourg State Street Bank International GmbH Luxembourg Branch Supervisory Board of the AIFM Leif Bjurström (since October 1, 2020) 49, Avenue John F. Kennedy DWS Investment S.A., 1855 Luxembourg, Luxembourg Claire Peel Luxembourg Chairwoman (since June 22, 2020) Sub-Transfer Agent DWS Management GmbH, Dr. Stefan Junglen (since January 6, 2020) Frankfurt/Main DWS Investment S.A., State Street Bank International GmbH Luxembourg Brienner Straße 59 Manfred Bauer (since October 1, 2020) 80333 Munich, Germany DWS Investment GmbH, Barbara Schots Frankfurt/Main DWS Investment S.A., Portfolio Manager Luxembourg Stefan Kreuzkamp DWS Investment GmbH DWS Investment GmbH, Mainzer Landstraße 11-17 Frankfurt/Main 60329 Frankfurt/Main, Germany

Frank Krings Sales, Information and Paying Agent* Deutsche Bank Luxembourg S.A., Luxembourg LUXEMBOURG Deutsche Bank Luxembourg S.A. Dr. Matthias Liermann 2, Boulevard Konrad Adenauer DWS Investment GmbH, 1115 Luxembourg, Luxembourg Frankfurt/Main * For additional Sales and Paying Agents, Holger Naumann please refer to the sales prospectus DWS Investments Hong Kong Ltd., Hong Kong

Nikolaus von Tippelskirch (until June 10, 2020) DWS Management GmbH, Frankfurt/Main

As of: March 5, 2021 DWS Investment S.A. 2, Boulevard Konrad Adenauer 1115 Luxembourg, Luxembourg Tel.: +352 4 21 01-1 Fax: +352 4 21 01-9 00